Apple Has Paused iPhone Manufacturing For The First Time

Apple Has Paused iPhone Manufacturing For The First Time

Apple has paused the manufacture of its iPhone series for the first time since the virus began in 2020 due to supply chain issues. According to the recent news updates Apple paused iPhone manufacturing for the first time in more than ten years for considerable days due to supply chain constraints and China’s continuous power restrictions. Some organizations that have this Christmas month are usually when Apple’s manufacturing ramps up to meet worldwide demand for the Christmas shopping season, but instead of more shifts and 24/7 production schedules, most of the employees have been given time off. Apple Paused iPhone Manufacturing For The First Time

This is the first time that Apple’s device manufacturing has been directly impacted by a supply chain restriction.  However, as the interruption continues, it is no longer possible to maintain a consistent supply of parts. According to the news feeds, the production line for both iPhones and iPads is pausing for many days owing to shortages of components required for the production. Another cause for the limitations of manufacturing Apple products was China’s limitations on the usage of power.

The main reason for apple to pause iPhone manufacturing.

This is the first time in many years that the Apple company has been directly impacted by supply chain deficits. And also, the first time they are planning to halt manufacturing of their products.

  • According to rumors, the Apple company was able to continue manufacturing all their products while dealing with all of the challenges up until now. But it is now getting harder for them to do so. This is the main reason why Apple is planning to pause the manufacturing of the iPhones and iPads. The reason for this is a shortage of the parts necessary to manufacture both of these devices.

Aside from that, several limits on the consumption of power have been enforced in China in recent months. power crisis in China This has an impact on production as well. As a result, Apple company is planning to halt manufacturing of their products for a couple of months or days.

Apple Has Paused iPhone Manufacturing
Apple iPhone

Struggles the Apple company has to face when halting their productions.

As we all know, Apple is a company with head offices all over the world. When pausing their production for several days or months this affects the continuity of the company heavily. Here are some struggles that the Apple company has to face when halting their productions.

  1. Apple Employees Are Getting Paid Time Off

When talking about manufacturing, this part of the year is often super busy for Apple. Usually, Apple’s suppliers like Foxconn and Pegatron who provide parts required for manufacturing, increase production to 24 hours a day during the first week of October. However, the situation appears to be the total opposite this year. Apple suppliers are now providing employees with paid time off. Previously, they used to provide overtime during this Christmas season. According to a supply chain coordinator, Apple has decided not to perform overtime operations since there were only a limited number of parts and chips to work with.

  1. Revenues are being affected as a result of the shortage.

The shortage of parts is will continue to have an influence on Apple’s sales estimates and revenue in the following year. The amount of the drop is estimated to be measured in billions of dollars. This is because December is the Christmas season and most people are busy buying Christmas gifts and food. People frequently purchase Apple goods as Christmas presents for themselves and their nearest and dearest. People who haven’t yet been able to buy an iPhone are already too late as a result of this development.

  1. The competition becomes harsher.

competitors in the tech industry copied the feature of apple. This is because of most the features apple introduced to their iPhones and other products were highly demanding. Still, Apple’s designs, shops, advertising, goods, and even product packaging are all imitating. The bad news is that there is an indication that other companies are now developing their own models. When Apple stops its manufacturing process even for a few days, it’s a great chance for their competitors. The competitors can promote their products easily because Apple is not in the competition anymore. Out of all the struggles Apple has to face, this will be a very big problem for the Apple company.

In October, Apple reduced its iPhone 13 manufacturing expectations because of slowing the demand. Apple Cuts iPhone 13 Manufacturing Targets Due To Slowing Of Demand  And unfortunately, Apple will have to give up iPhone and iPad shipments in order to keep iPhone 13 production going. Yet it is not enough to keep production from stalling. Apple’s initial objective was to manufacture 96 million iPhone 13 models in 2021, but by the beginning of December, Apple paused iPhone manufacturing for the first time and  had to decrease that number to roughly 83-85 million.

Apple CEO Tim Cook previously stated that they lost $6 billion in the third-quarter ending in September due to supply chain bottlenecks. So that the company would lose much more in the fourth quarter. However, according to a recent news report, Apple notified suppliers that demand for its main source of revenue had already dropped shortly before the Christmas holidays.